Event: the company released the semi-annual report for 2021. During the reporting period, the company realized operating income of 4.718 billion yuan (+ 9.88%), net profit loss of 95.0426 million yuan (- 103.06%), and-135 million yuan after deduction, a loss of 164 million yuan over the same period last year.
Main points of investment
Production efficiency has been improved, and the number of orders has increased steadily. In 2020, the company achieved an operating income of 4.718 billion yuan (+ 9.88%) and a net profit loss of 95.0426 million yuan (- 103.06%), a decrease of 3.198 billion yuan over the same period last year, mainly due to the 3.39 billion yuan investment income recognized by the company's disposal of Guangzhou Shipping International Equity in the same period last year. During the reporting period, non-recurrent profit and loss was 40.3374 million yuan, deducting non-net profit was-135 million yuan, reducing loss by 164 million yuan compared with the same period last year, mainly because the overall increase in production output during the reporting period led to an increase in comprehensive gross profit of the products. and the combined effect that Guangzhou Shipping International deducted non-return net profit from January to February last year. In the first half of the year, the company focused on the overall improvement of production efficiency and production output, the cash flow improved, and the debt ratio decreased, realizing the operation of 5.721 billion yuan, an increase of 157.82% over the same period last year.
The operation and management of major subsidiaries will be improved. During the reporting period, Wenchong Shipyard overcame the impact of the epidemic, continued to promote fine management, strictly controlled production costs, and improved production efficiency, achieving a main business income of 1.183 billion yuan and a net profit of 16.6214 million yuan, with a marked improvement over the same period last year. Guangzhou Shipping International continues to promote cost engineering, improve the level of cost control, produce orderly and ensure the delivery of ship products, and achieve a main business income of 3.906 billion yuan and a net profit of-98.4413 million yuan during the reporting period, achieving a trend of cost reduction, efficiency and economic benefits. Under the background of accelerating industrial upgrading and eliminating backward production capacity in the current shipbuilding industry, the company pays attention to continuously building R & D capabilities, construction technology and other core competitiveness, open up new growth points, and further enhance profitability. At present, we master and own the core technology of independent intellectual property rights in high-tech, high value-added products and special ships, such as regional container ships, business ships, scientific research ships, wind power installation platforms and so on.
The marine industry has achieved high growth. In terms of business, the revenue of the company's shipbuilding business in the first half of the year was 3.183 billion yuan (+ 3.41%); the revenue from steel structure engineering was 904 million yuan (+ 49.17%); the revenue from marine engineering business was 347 million yuan (+ 227.36%); the revenue from ship repair business was 107 million yuan (- 57.2%); revenue from mechanical and electrical products and other business was 102 million yuan (- 41.38%). The high growth of marine business mainly benefits from the improvement of the market boom. At present, the marine equipment construction market is showing a trend of differentiation, and the new demand for drilling platforms and offshore ships for oil and gas purposes continues to shrink. Mobile production platforms and offshore wind power installation, operation and maintenance equipment have become new performance growth points. In the first half of 2021, mobile production platform orders totaled US $3.1 billion, accounting for 52% of the total global transaction value in the first half of the year, while offshore wind power installation and operation and maintenance equipment totaled US $1.75 billion, an increase of 229% over the same period last year.
Investment suggestion: at present, the integration process of China Shipping Group has been further promoted, and the company's management level and production efficiency have been continuously improved. In the future, the company will further strengthen the development and technical research of new ship types, high-tech and high value-added ships, and orders for military and civilian products are expected to continue to be released. Combined with the planned revenue of 11.2 billion yuan in 2021 and the planned contract of 13.1 billion yuan, the net profit of the company from 2021 to 2023 is expected to be 119 million yuan, 181 million yuan and 222 million yuan respectively, and the EPS is 0.08,0.13,0.16 yuan respectively. Given a "buy" rating, the target price is 24 yuan, and the corresponding share price is 257,158,129 times PE respectively.
Risk tips: exchange rate risk; cost risk.